RPC, Inc. was spun off from Rollins, Inc. in 1984. Its oldest subsidiary, Patterson Services, has a 60 year history. Patterson Services was founded in the 1940's and acquired by Rollins Inc. (NYSE: ROL) in 1973. Cudd Pressure Control was founded in 1977 and acquired by Rollins in 1980. When the oilfield entered a severe cyclical downturn in the early 80s, Rollins made the decision to spin off Patterson and Cudd in 1984 as RPC Energy Services (NYSE: RES) (the name was later changed to RPC, Inc.).
Focus on Oilfield Services
Until 2001, RPC was a diversified holding company, with businesses in areas from oil services and waste management to recreational powerboats. Starting in 1999, RPC began divesting its non-core businesses (See below). Today, RPC is a pure-play oil and gas services company with 97% of revenues coming from oil and gas services businesses.
1999 Sold Eco Waste Technologies
2001 Spun off Chaparral into Marine Products
2001 Sold Business Link International
2004 Sold Anchor Crane
2005 Sold International Hammer and Spindletop Services
Growing through Acquisitions
Since its inception, RPC has negotiated numerous, small add-on acquisitions and created a successful pressure pumping operation. Now that RPC is a pure-play oil and gas services company, acquisitions have been funded in part with RPC common stock.
We have an ongoing acquisition effort to find suitable acquisition candidates. RPC operates on a decentralized basis, appealing to sellers of businesses that are interested in remaining with their companies after the acquisition. Most recently, we have been focused on expanding our pressure pumping service line geographically and creating scale to allow us to compete more effectively for larger and more profitable jobs. RPC's managers are mindful of the value that can be destroyed by paying too much for a company, so RPC creates a win-win situation by paying small premiums for acquisitions, but providing the sellers the opportunity to generate additional proceeds based on future financial performance.
RPC Acquisitions History
1996 - International Training Services: Well Control School
1997 - Spindletop Tubular Services
1999 - Applied Snubbing Technology, Inc.
2000 - Freemyer Technical Services, Inc.
2001 - Sooner Testing, Inc.
2001 - Mathews Energy Services, Inc.
2003 - Bronco Oilfield Services